Refurbished phones in better demand as price hurts new

Demand for refurbished smartphones has outpaced that for new ones in the first half of 2022, as the average price of new handsets continued to increase.

The refurbished phone sector is now seeing additional funding and new entrants, as it expands into the offline segment and categories beyond smartphones, said analysts and industry executives.

"Considering the growth of the secondary market, consistent initiatives by the players, and consumers being more aware of refurbished options, the growth seems high for refurbished smartphones, possibly even more than new smartphones," said Glen Cardoza, senior research analyst at Counterpoint Research.

The overall smartphone market fell 1% on year in the first half of 2022, analysts estimate.

"However, we do not think refurbished smartphones will grow as fast as last year (when it grew 25% on year versus 7% by new devices) since the pent-up demand is not that high," he added.

Industry lobby body India Cellular & Electronics Association expects the segment to double to $4.6 billion by 2025 from $2.3 billion in 2021.